Accounting and CFO Staffing and Compensation - Glen Katlein

Welcome to TAB-Collin County

Accounting Staffing and Related Control Risks

September 15, 2009

Presented By:

GLEN J. KATLEINPartner

B2B CFO®


TOPICS

Accounting Positions – education, functional experience

Accounting Positions – compensation levels

Staffing – on payroll versus outsourcing

Recruiting – competency screening / testing

Segregation of Duties – cash control risks

Accountant versus Controller versus CFO – role expectation

B2B CFO®



Bookkeeper – Accounting Clerk no degree, or Associates Degree 2 plus years experience records transactions balances ledgers prepares reports processes receivables, payables

Staff Accountant Bachelors degree may or may not be CPA zero (0) to six (6) years experience prepares more complex balance sheets and income statements prepares more complex other financial reports



Accounting Supervisor, Manager, Assistant Controller Bachelors degree May or may not be CPA 5 to 10 years experience Supervise accounting staff Identifies and resolves accounting system issues

Controller Bachelors degree May or may not be CPA 10 plus years experience Lead entire accounting organization Ensure effective accounting systems and controls



Small Companies

Position Avg Base Bonus Total

Bookkeeper/clerk $ 34,400 $ 800 $ 35,200

Accountant $ 48,900 $ 1,600 $ 50,500

Accounting Management $ 70,100 $ 4,200 $ 74,300

Controller $ 112,000 $ 22,500 $ 134,500

Chief Financial Officer $ 189,700 $ 108,700 $ 298,300

CFO (Midmarket Company) $ 208,900 $ 119,700 $ 328,600

Source: Accounting Principals 2009 Salary Guide with DFW Index



All Companies

Position Avg Base Bonus Total

Bookkeeper/clerk $ 36,500 $ 900 $ 37,400

Accountant $ 52,000 $ 1,700 $ 53,700

Accounting Management $ 74,400 $ 4,400 $ 78,800

Controller $ 144,900 $ 29,600 $ 174,500

Chief Financial Officer $ 318,700 $ 182,600 $ 501,300

CFO (Midmarket Company) $ 208,900 $ 119,700 $ 328,600

Source: Accounting Principals 2009 Salary Guide with DFW Index


Staffing – on payroll versus outsourcing

Oustourcing options for bookkeeping

Quickbooks services $ 40 to $ 75 per hour

CPAs $ 65 to $ 100 per hour

Temporary staffing $ 35 to $ 45 per hour

Outsourcing options for accounting

CPAs $ 75 to $ 125 per hour

Venturity (local) $ monthly fee

Corefino (national) $ monthly fee


Recruiting – competency screening / testing

Internal versus recruiter

population of candidates

screening

selection

See sample test


Segregation of Duties – Cash Control Risks

The following functions should be segregated from employees who deposit cash receipts or process check payments:

Accounts Receivable posting

Accounts Payable vendor administration

Accounts Payable posting

Cash Sales posting

Bank Reconciliation

Journal Entries


Bookkeeper/Accountant versus Controller versus CFO – role expectation

Bookkeeper /Accountant Controller CFO

Process AR and AP Review AR and AP for Forecast cash flowaccuracy and aging

Record transactions Review transactions for Forecast P&L and accuracy-completeness Balance Sheet

Prepare statements Review statements for Develop meaningfulaccuracy-completeness reports, ie. ServicePrepare complex reports or customer profitability

Process payroll Review payroll reports Develop effective incentiveand compensation plans




Reconcile GL and Review reconciliations Recommend effectivebank statements controls

Prepare sales and Review sales and Coordinate with CPA toproperty tax reports property tax reports ensure procedures and

interpretations avoid taxes

Prepare bank reports Review bank reports for Assist owner / CEO with accuracy-completeness effective bank relationship




Support IT Accounting Support IT strategySystem

Review / advise onmajor contracts

Develop dashboard reports

Assist in strategic planning

Support acquisitions

Support exit strategy

See Brochure

Business

Accounting and CFO Staffing and Compensation - Glen Katlein